\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 95 Autek China Inc(300595) )
Event: on the evening of March 28, 2022, the company released its annual report for 2021. In 2021, the company realized an operating revenue of 1.295 billion yuan, a year-on-year increase of 48.74%; The net profit attributable to the parent company was 555 million yuan, a year-on-year increase of 28.02; Deduct non net profit of 488 million yuan, an increase of 22.87% year-on-year.
The performance is in line with expectations. The repeated epidemic and high base affect Q4 performance, and it is expected to return to normal growth in 22 years. In 2021, the net profit attributable to the parent company and net profit deducted from non parent company basically fell near the median value of the previous performance forecast (the median value of the performance forecast was 563 million and 496 million respectively), and the performance was in line with expectations. Quarter by quarter, Q4 company achieved an operating revenue of 299 million in 2021, with a year-on-year increase of 13.20%; The net profit attributable to the parent company was 112 million, a year-on-year decrease of 28.27%. This is mainly due to the serious impact of the epidemic in the first half of 2020, and some optometry needs are deferred to the second half of the year, resulting in a high base of the company’s 2020q4 performance. If compared with Q4 in 2019, the compound growth rates of Q4 company’s operating revenue and net profit attributable to parent company in 2021 are 35.87% and 20.07% respectively, still maintaining a rapid growth. In addition, equity incentive deduction of income tax and cost sharing also had an impact on the profits in the fourth quarter.
The expense side remained stable, and the diversification of business expansion led to a slight decrease in gross profit margin. In 2021, the company’s expense rate was 29.19%, with a year-on-year increase of 0.2pp, and the expense side remained stable. The sales expense rate is 18.83% (+ 0.41pp); The rate of administrative expenses is 10.07% (-0.57pp); The financial expense rate is 0.29% (+ 0.36pp). The profitability of the company is maintained at a high level. The gross profit margin of the core product corneal shaping lens is 89.66%, and the comprehensive gross profit margin of the company is 76.79%. The gross profit margin is slightly lower than that in 2020, mainly because some consolidated subsidiaries of the company are engaged in wholesale business during the reporting period, and the gross profit margin is relatively low; At the same time, the company continued to expand terminal optometry services, and the gross profit margin of the hospital business was also lower than that of the company’s traditional product sales, resulting in a decline in the comprehensive gross profit margin.
Corneal shaping lens is still the core product of the company, and the optometry terminal service network is taking shape. In 2021, the company achieved an operating revenue of 670 million yuan (year-on-year + 28.45%), showing a steady growth trend, accounting for 51.73% of the revenue; The gross profit margin is 89.66%, basically the same as that in 2020. The company has completed the clinical trial of a new type of corneal shaping lens with ultra-high oxygen permeability, most of the samples have been enrolled and clinical observation has been carried out, and the product line is expected to be expanded. By the end of 2021, the company had participated in and controlled more than 350 visual terminals, with direct sales revenue reaching 828 million, accounting for 64% and gross profit margin of 80.65%. In 2022, the company is also expected to expand no less than 100 visual terminals (excluding fixed growth). With the increasing integrity of the company’s terminal service network, it is expected to form a better synergy with the upstream optoelectronic devices.
The sales of nursing products maintained rapid growth, and the product line of optometry was constantly enriched. In 2021, the company’s revenue from nursing products reached 228 million yuan, a year-on-year increase of 47.49%, accounting for 17.63% of the overall revenue. The company is still expanding its product line: 1) the hard contact lens washing liquid has obtained the product registration certificate in March 2022; 2) The hard mirror lubricant has completed the clinical trial and applied for registration, which is under approval; 3) Completed the registration test of scleral lens and is preparing for clinical trial; 4) The application of atropine eye drops in hospital has been completed and accepted. The company’s product line layout around eyesight is continuously enriched and its comprehensive competitiveness is continuously strengthened.
Profit forecast and investment suggestions: according to the annual report of 2021, we updated the company’s profit forecast. Considering the strong demand of the corneal shaping lens industry, the company’s core products are expected to maintain rapid growth in the future, and with the expansion of business diversification, the gross profit margin decreases slightly. It is estimated that the company’s revenue from 2022 to 2024 will be RMB 1.691 billion, 2.217 billion and 2.855 billion, with a year-on-year increase of 30.6%, 31.1% and 28.8%, The net profit attributable to the parent company was 709 million yuan, 939 million yuan and 1234 million yuan (the predicted value before 20222023 was 791 million yuan and 1032 million yuan), with a year-on-year increase of 27.82%, 32.49% and 31.33%. The company’s industry has high prosperity and strong consumption attributes. The company’s products have low penetration rate in China and good competition pattern. It is expected to maintain rapid growth and “buy” rating in the future.
Risk warning event: the risk of intensified market competition, the risk of relative concentration of raw material suppliers, and the risk of product market promotion failing to meet expectations.
